International movement of capital
International movement of capital

The following Tax practice note provides comprehensive and up to date legal information covering:

  • International movement of capital
  • Definitions
  • Control
  • Controlling partner
  • Connected person
  • Group company
  • The reporting body
  • Reportable events and transactions
  • Value of event or transaction
  • Value of shares or debentures
  • More...

The international movement of capital rules should be considered whenever:

  1. any non-UK tax resident subsidiary (referred to in this note as a foreign subsidiary or foreign company) is controlled directly or indirectly by a UK tax resident company, and

  2. either:

    1. the foreign company's shares or debentures are issued or transferred, or

    2. the foreign subsidiary becomes or ceases to be a controlling partner in a partnership (wherever that partnership is established)

In these cases, the reporting body (usually the top UK tax resident company of a group of companies who, alone or taken together with others, controls the foreign subsidiary) must submit a report to HMRC unless the event or transaction is:

  1. excluded, or

  2. worth no more than £100 million (taking into account the value of any events or transactions which are part of the same series of events or transactions)

The international movement of capital rules:

  1. are found in Schedule 17 to the Finance Act 2009, and

  2. the International Movement of Capital (Required Information) Regulations 2009, SI 2009/2192

With effect for events or transactions occurring on or after 1 July 2009, the international movement of capital rules replaced the Treasury Consent rules in section 765 of Income and Corporation Taxes Act 1988 (ICTA 1988) and the post-transaction reporting obligations involving movement of capital within the European Union in ICTA 1988, s 765A.

Definitions

Key definitions are:

Control

Control in relation to

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